The Chinkou
As by request:
All 5 of the indicators on ichimoku are equally important. I don't allude to the chinkou as much because I use more as a confirmatory type signal and to indicate that the middle of the trend is still going the same way.
Just the crossover on the chinkou will yield many good trade. The problem is that I am more of a type of trader and forecaster that likes calling the peaks and valleys. I don't like trading a trend when it is have finished.
In that way, it works similar to an MA. Price action will always gravitate back to it. Price will break on the other side, then stay there for awhile, before gravitating back and going to the other side.
This is why I do not make a trading decision based on the chinkou, but rather use it to confirm what I am already seeing.
Another thing about the chinkou is I like to use it similarly as when price action moves too far away from the cloud. If the candle drifts too far under the chinkou, it is time to reverse. Recent price action on Nifty will bear that out.
